Funding a crucial lifeline for Margaret River wines to reclaim footing in China market

The Margaret River wine industry says there will be logistical challenges to get back into the game with China.

A $500,000 support program unveiled by the State Government last week would go a long way to help vintners overcome the obstacles to regaining the region’s foothold in the Margaret River industry’s biggest export market, Margaret River Wine Industry chief Amanda Whiteland said.

The money was announced by Premier Roger Cook and regional development minister Don Punch in Margaret River on Friday, geared towards re-establishing supply chains and industry connections.

The money adds to the $6 million already invested in WA’s Wine Industry Export Growth Partnership.

The funds will also support hosting Chinese trade delegations and attendance at major events including Vinexpo Asia in Hong Kong in May, and ProWine in Shanghai in November.

While Margaret River was more insulated from the wine glut that troubled the Eastern States and the Barossa before the thaw in relations, thanks to a long-term focus on high-end vintages, the region’s wines already had a stellar reputation in the Chinese market.

Ms Whiteland said the funding was invaluable for re-engaging with China, as well as maximising domestic opportunities.

“Before the duties were imposed, mainland China was Margaret River wine’s most valuable export market, representing 26 per cent of the region’s bottled wine export value in 2019,” she told the Times.

“As mainland China remains an important wine market, re-entry will undoubtedly interest some Margaret River wineries.

“However, it is also recognised that it is a different market now and will take time and resources to re-establish.”

Wines of WA chief executive Larry Jorgensen said WA producers were “dead keen to get in there” and secure up to $15m in extra revenue for the sector.

But since the tariffs were axed, compliance regulations had ramped up in China, making the State Government backing crucial, Mr Jorgensen said.

“People need to take a bit of time to get their heads around what’s needing to be done and also getting it ready for shipment,” he said.

“There are some challenges, no doubt, but it’s a nice challenge to have, isn’t it? Getting your product to market as opposed to not being able to.”

Mr Punch saluted the wine industry for being “tremendously resilient” during the past four years.

“This is now a great opportunity to re-establish the links with China,” he said.

“We have good relationships with China in the wine sector.

“It’s a great opportunity to rekindle those, look at the premium quality hotel and restaurant sectors, as well as the direct consumer markets.”

The Premier said the funding was designed to help wineries re-establish their place in China against competition from other States.

“Supporting our premium wineries to re-enter the Chinese market is key to encouraging diversification, benefitting the WA economy in the long term,” he said.

He also indicated other support could flow to bolster Margaret River wines as the situation with China became clearer.